09/08/2010
Expectations of higher inflation up to 5.2 %
A newly economic report issued recently brought back the change in the inflation rise in Saudi Arabia, for several reasons especially the presence of obstacles in the Kingdom's supply as a result of the increasing domestic demand, while most other countries have produced great backup stock.
According to a report issued by Jadwa Investment indicating:" the huge government spending led to the rising prices of raw materials, and high salaries of government employees and their remuneration and other benefits resulted in raising the domestic demand.
However ,the report emphasized that the clear increase in consumer spending led to increase the demand for goods, thus allowing retailers to increase margins. The report predicted a higher average inflation rate for 2010 up to 5.2 percent, compared 4.2 percent in 2011.
